Asia stocks rise on hopes of economic recovery

Stocks mostly rose in Asia during early trade Wednesday after Wall Street extended gains on hopes that a strong earnings season would signal an economic recovery.

Japan’s benchmark Nikkei 225 stock average was up 0.3 percent to 11,195.34. Many Japanese chip-related concerns were also up strongly, after Intel Corp. posted strong first-quarter results earlier in New York,

Tokyo Electron Ltd., which makes equipment to produce semiconductors, gained 4.7 percent to 6,670 yen, while Advantest Corp. gained 2.8 percent. Canon Inc. and Nikon Corp., with large chip-making equipment divisions, were also among the top gainers for the day.

Strong results from such companies could signal an increase in technology spending by other businesses, a sign that the global economy is recovering.

South Korea’s Kospi gained 0.8 percent to 1724.15, with markets in Australia and New Zealand also higher.

Markets in the Singapore, Taiwan and the Philippines were also higher, while the main Shanghai index was slightly down.

Earlier in New York, the Dow Jones industrial average inched up 13 points to 11,019.42, finishing above the psychological benchmark of 11,000 for the first time in a year and a half.

The Dow is on a four-day upswing, as investors buy on expectations for positive results in the upcoming earnings season. After regular trading ended, leading U.S. chipmaker Intel Corp. said first-quarter profit nearly quadrupled from a year earlier, beating analyst forecasts.

In currencies, the dollar strengthened slightly to 93.25 yen. The euro traded at $1.3642 versus $1.3616 late Tuesday.

Source: AP